Brazil Economy Adds More Jobs than Expected

Brazil created 255,321 jobs in February 2026, up from 112,334 net payrolls in January and the highest since February 2025. There were 2,381,767 hires and 2,126,446 layoffs. By sector, all five major activity groups posted gains: services up 177,953, general industry up 32,027, construction up 31,099, agriculture up 8,123, and commerce up 6,127. By region, all five Brazilian regions showed positive balances, with the Mid-West recording the highest percentage increase at 0.89%. By state, 24 of 27 posted gains, led by São Paulo up 95,896 (0.66%), Rio Grande do Sul up 24,392 (0.84%), and Minas Gerais up 22,874 (0.46%). By demographics, women accounted for 155,064 new jobs and men for 100,257. People aged 18–24 led with 116,925 jobs. Those with high school education gained 162,295 positions. People earning 1–1.5 minimum salaries added 169,007 jobs.

Brazil created 112,334 formal jobs in January 2026, surpassing forecasts of 92 thousand and marking the highest level since September 2025. This reflects the net difference between 2.2 million hires and 2.1 million dismissals during the month. The country now has over 48.5 million active formal employment contracts. Four of the five major economic sectors posted growth, led by industry (+55.0 thousand jobs), construction (+50.5 thousand), services (+40.5 thousand), and agriculture (+23.1 thousand). The commerce sector posted a net loss of 56,800 jobs, a seasonal post-holiday decline. Eighteen of twenty-seven states recorded job growth, with Santa Catarina (+19.0 thousand), Mato Grosso (+18.7 thousand), and Rio Grande do Sul (+18.4 thousand) posting the largest gains.

Brazil shed 618,164 formal jobs in December 2025, well above forecasts for a loss of around 478,000 and reversing November’s gain of 85,900. December typically sees seasonal layoffs, and the 1.26% monthly decline was broadly in line with the recent December average of 1.07%. All five major sectors posted net losses, led by services (-280,810), followed by industry (-135,087), construction (-104,077), commerce (-54,355), and agriculture (-43,836). Every state recorded negative balances, with the largest losses in São Paulo (-224,282), Minas Gerais (-72,755), and Paraná (-51,087).